News and Tribune

Recent Local News

May 10, 2013

New Albany sewer board retires bond early

Utility’s debt has dropped by $10 million in three years

NEW ALBANY —

The New Albany Sewer Board voted to pay off a revenue bond from 1999 ahead of schedule Thursday. 

The bond was originally worth $500,000, and about half of the sum was still owed, according to city officials. 

“By approving the early retirement of this bond, we have saved the taxpayers of New Albany five years’ worth of interest payments,” City Controller Mary Ann Prestigiacomo said. 

Since the city raised sewer rates in 2010 and again last year, the total debt service owed by the sewer utility has decreased from about $70 million to about $60 million. 

Thursday’s vote was another step toward paying down that debt, Mayor Jeff Gahan said. 

“This action will not only reduce our overall debt, but it will further our goal of improving the overall financial strength of the sewer utility,” Gahan said. 

By the end of the year, the utility will also have completed about 90 percent of the projects approved by the U.S. Environmental Protection Agency to reduce sanitary sewer overflows and strengthen the wastewater system, sewer board member Ed Wilkinson said. 

“So going forward, we thought the best use of the constituents’ money was to start paying down the bond obligations,” he said. 

The action taken by the board Thursday to retire the bond early shouldn’t hamper the utility’s attempt to have the annual Economic Development Income Tax pledge removed, Wilkinson continued. The utility is subsided by a $570,000 annual EDIT pledge, and the amount has been as high as $875,000. 

Though rates are supposed to be set at amounts to cover utility expenses, the State Revolving Loan Fund department mandated the EDIT pledge remain intact in 2010, when the city borrowed money to foot the EPA projects. The EDIT pledge is slated to continue until 2023, but with improvements in the utility’s finances, officials have been in talks with the state in hopes of having the subsidy removed. 

Text Only | Photo Reprints
Recent Local News
LOCAL MAGAZINES
2013 Photos of the year


Take a look at our most memorable photos from 2013.

SPECIAL CONTENT
Twitter Updates
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
AP Video
Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Raw: Church Tries for Record With Chalk Jesus Raw: Faithful Celebrate Good Friday Worldwide Deadly Avalanche Sweeps Slopes of Mount Everest Police Arrest Suspect in Highway Shootings Drought Concerns May Hurt Lake Tourism Vermont Goat Meat Gives Refugees Taste of Home Calif. Investigators Re-construct Fatal Bus Cras Mayor Rob Ford Launches Re-election Campaign Appellate Court Hears Okla. Gay Marriage Case
2013 Photos of the year


Take a look at our most memorable photos from 2013.